Why does the exported obj look wrong?
The problem is (as guessed by ideasman42) that Blender exports .obj-files always (at least I tested it on windows and Linux) with Linux line endings (that means there are only LF and no CR characters).

If you use a better editor than the standard Notepad you can often see the file correct even on Windows (for example with Notepad++). There should be no problems using this file as it is, because I think most Programs can work with both line ending types. If it doesn't work it's easy to convert the line endings (as well with something like Notepad++).